The 5 Best ETFs to Invest for 2013

Buying targeted dividend ETFs is easier than buying high-yield dividend stocks.
Dividend stocks were red-hot last year as the über-volatile market sent investors headlong into what has traditionally been the most stable segment of the equity universe. And while it isn’t likely we’ll see quite as much volatility in 2012 as we did in the final four months of 2011, powerful unknowns, such as Europe’s unresolved debt issues and China’s economic slowdown, could put real pressure on global economic growth — and by extension, the fate of the world’s equity markets. That means we could be in for an extended period of volatility and more capital inflows into the dividend space.
As investors, we can buy a well-thought-out group of solid, high-profile dividend stocks to gain exposure to the segment. But it’s easier to buy targeted dividend ETFs that already contain baskets of the best — and highest-yielding — dividend-paying securities.
The 5 Best ETFs to Invest for 2013 - iShares Dow Jones Select Dividend Index
The iShares Dow Jones Select Dividend (ETF) (NYSE:DVY) is an ETF pegged to the Dow Jones index bearing its name. This ETF really saw gains during the final three months of 2011, perhaps the most volatile time for stocks all last year. The fund surged 11% over that period, and that gain came with a 3.44% annual yield (as of Jan. 13). DVY counts among its top holdings such stellar corporate names as Lorillard (NYSE:LO), Chevron (NYSE:CVX), Kimberly-Clark (NYSE:KMB) and McDonald’s (NYSE:MCD), to name just a few. The fund’s expense ratio is only 0.40%, making the cost of owning these high-end performers very attractive.
SPDR S&P International Dividend
International stocks were by no means the best performers last year, but that didn’t stop the SPDR S&P International Dividend (ETF) (NYSE:DWX) from delivering a solid dividend yield of 4.02%. DWX’s expense ratio is 0.45%, just slightly higher than the domestic-equity focused DVY. For this modest cost, you get diversified exposure to international dividend stocks in income sectors such as telecommunications, utilities and financials.
The 5 Best ETFs to Invest for 2013 - WisdomTree Equity Income Fund
WisdomTree Equity Income Fund (NYSE:DHS) enjoyed a good year, and it performed particularly well in the final quarter. The fund is up almost 8% over the past three months, and that comes with an annual yield of 3.31%. Its holdings are based on WisdomTree’s Equity Income Index, which reads like a Who’s Who of dividend stalwarts. Companies such as AT&T (NYSE:T), General Electric (NYSE:GE), Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG) top the list of payout performers you get when you own DHS. And at an expense ratio of just 0.38%, you get these great companies on the cheap.
The 5 Best ETFs to Invest for 2013  - iShares S&P U.S. Preferred Stock Index Fund
The iShares S&P U.S. Preferred Stock Index Fund (NYSE:PFF) is an ETF that gives you exposure to preferred stocks. I like this fund primarily because of its outstanding 6.99% yield, but I also like it because it diversifies your income portfolio by owning the preferred shares of some of the world’s best companies. HSBC Holdings (NYSE:HBC), General Motors (NYSE:GM), Wells Fargo (NYSE:WFC) and many others have issued high-yield preferred shares, and the easiest and cheapest way to own these equities — at an expense ratio of just 0.48% — is to have PFF in your portfolio.
The 5 Best ETFs to Invest for 2013 - Claymore/Zacks Multi-Asset Income Index
Clamymore/Zacks Multi-Asset Income Index (ETF) (NYSE:CVY) is perhaps the most eclectic fund of my five best ETFs for 2012. CVY has had a great run over the past three months, vaulting nearly 6% while offering an annual yield of 5.42%. One huge reason to love CVY is that it contains a host of different types of high-yield securities. In addition to domestic and international stocks, the fund holds real estate investment trusts, master limited partnerships, closed-end funds, Canadian royalty trusts and traditional preferred stocks. Owning CVY gives you the best of the best when it comes to income securities at a quite acceptable 0.78% expense ratio

Wells Fargo Doubles Recruiting; Starts a New Ad Campaign

Wells Fargo Advisors Recruited 545 veteran financial advisors in the first eight months of 2008 and has nearly doubled that figure in the same period of 2009, attracting 1,054 experienced FAs.
In addition, the majority -- 80 percent -- of those recruited in 2009 are from the wirehouses, the company says.
Last year, it recruited a total of 766 experienced financial advisors. If it is able to keep recruiting at the current pace, Wells Fargo Advisors could recruit about 1,500 veteran advisors or more.

"The first months of 2009 were extraordinary," says Chip Walker, who has been leading the firm's integration and recruiting efforts. "
There's been an incredible amount of dislocation of advisors in the wirehouse model," Walker says. That has to do with the fact that there "are so many advisors in the wirehouses," whereas, in the past, many of them were with regional firms, he explains.
In addition, many advisors have been "forced to look at their options," Walker adds. "We have had a lot of success recruiting experienced FAs from the wirehouses. There's no question about it."
The average industry length of service of recruited veteran FAs is now close to 16.5 years, he says, vs. about 13.5 in 2004. "The increase in the length of service has spiked dramatically in 2009," Walker explains. Average trailing-12-month fees and commissions have held up well, he adds, and have even increased in some of the brokerage's FA channels.
As of June 30, the Wells Fargo brokerage business included 15,500 financial advisors in the United States and Latin America and 6,100 licensed financial specialists with roughly $1 trillion in client assets. The firm's private client group has 11,600 financial advisors, and the bank group has about 2,800 financial advisors. Most of the remaining FAs are in the firm's independent group.
"We peel the onion," the recruiting executive says, when it comes to looking at potential recruits. Beyond fees and commissions, other factors the brokerage firm looks at include an advisor's ability to grow his or her business before the economic downturn and how well he or she held up during the crisis.
As for the firm's recruiting and sales practices, "We have a consistent, repeatable due diligence process," he explains, that emphasizes putting the client and the client's interests first.
Walker also says Wells Fargo Advisors, formed by Wells Fargo's purchase of Wachovia earlier this year, is now focused on growing as a good operator rather than as a good integrator.
"It's been over two years since we announced the merger with A.G. Edwards," he explains, "and in October, it will be exactly two years ago that the merger was finalized." Some rivals, Walker notes, "are just entering the integration phase."
Through the legacy A.G. Edwards training program, Wells Fargo Advisors is likely to hire 400-500 new advisors in 2010, according to the executive. "This is a great growth lever," Walker notes.
"We can compete with any firm out there," says Walker. "We have the scale and scope of products, services, technology and human capital. We are firmly positioned with a great corporate parent."
Its corporate parent, Wells Fargo, can help advisors grow their business by providing them with "a steady source of leads and referrals," he explains. Plus, the brokerage business has a strong regional culture.
"We feel very good when we look at the number of FAs that we're having conversations with and the responses we get to our multi-channel business model," explains Walker. The combined financial advisory businesses of Wells Fargo and Wachovia unveiled a new national advertising campaign in mid-September, after introducing the Wells Fargo Advisor brand in May.
"The new advertisements allow us to emphasize Wells Fargo Advisors' position as the financial advice arm of Wells Fargo, while reengaging with our clients and demonstrating how our union with Wells Fargo creates a brokerage firm that is even more qualified to help our clients achieve their life goals," says David Monday, executive director of marketing, innovation and growth.
The TV ads can be seen on Sunday morning talk shows, NFL football games and select cable television stations, including CNN, CNBC, Fox News, MSNBC, the Weather and Travel channels and ESPN. In addition, a sponsorship message will appear on select PBS programs. Print and online ads will also appear in various publications and on websites.